SARATOGA SPRINGS--James Gandy, librarian for the New York State Military Museum in Saratoga Springs N.Y., holds the 150-year old diary kept by Confederate Army lieutenant James Malbone. Malbone wrote parts of the diary in a homemade code to keep private information about military movements, his sex life, and his musings about the possibility that Varina Davis the wife of Confederate President Jefferson Davis was of African-American ancestry. Malbone's code was recently broken by Queens College associate professor Kent Boklan a former National Security Agency-trained code breaker.